New India Cooperative Bank's GM Hitesh Mehta Nabbed in Rs 122 Crore Fraud Case

On Saturday, Hitesh Mehta, the former General Manager and Head of Accounts at Mumbai's New India Cooperative Bank, was arrested by the Economic Offences Wing (EOW) in a Rs 122 crore embezzlement case. Mehta is scheduled to appear in court tomorrow.

The EOW also conducted a raid at his Dahisar residence, where they confiscated relevant documents.

The case against Mehta was filed just two days after the Reserve Bank of India (RBI) imposed restrictions on the bank due to suspected financial misconduct. The complaint was lodged by Devarshi Shishir Kumar Ghosh, the bank's CEO, leading to Mehta's arrest, according to police sources.

In his police complaint, Ghosh stated that Mehta, along with an unnamed accomplice, were highly trusted employees responsible for safeguarding the cash in the bank's vaults at its Prabhadevi and Goregaon offices. However, the two allegedly conspired to embezzle approximately Rs 122 crore. The complaint claims that the fraudulent activities occurred between 2020 and 2025.

The EOW had recently received a tip-off from the bank regarding potential financial irregularities. On Friday, officials recorded a statement from a senior bank representative, registered an FIR at Dadar police station, and subsequently took charge of the investigation.

The FIR was filed under sections 316(5) (criminal breach of trust by a public servant or banker) and 61(2) (criminal conspiracy) of the Bharatiya Nyaya Sanhita (BNS).
As of March 2024, New India Cooperative Bank operates 30 branches and holds a deposit base of Rs 2,436 crore. The bank reported losses of Rs 22.78 crore for the 2023-24 financial year and Rs 30.74 crore for the 2022-23 period.

The Reserve Bank of India (RBI) has imposed strict restrictions on the loss-making New India Cooperative Bank, directing it to cease granting or renewing loans and advances, making investments, incurring any liabilities (including borrowing funds), or accepting new deposits without prior written approval from the RBI. The bank is also prohibited from disbursing or agreeing to disburse any payments to settle its liabilities and obligations without RBI's consent. These restrictions took effect after business hours on February 13 and will remain in place for six months.